Diamond Shamrock Refining Co., L.P., Diamond Shamrock Refining and Marketing Co., Diamond Shamrock, Inc., Sigmor Corp., and Ultramar Diamond Shamrock Corp. v. Donna Hall

Summary

The Supreme Court of Texas held that no clear and convincing evidence supported the jury’s finding that Diamond Shamrock was grossly negligent in connection with a refinery explosion that killed Charles Hall. The Court concluded that the evidence showed, at most, ordinary negligence and did not establish Diamond Shamrock’s subjective awareness of the specific risk combined with conscious indifference. The Court reversed the court of appeals and rendered judgment that Donna Hall take nothing.

Holdings

1. Diamond Shamrock did not waive its legal-sufficiency challenge by asking the trial court to limit exemplary damages to the statutory cap because that request was not inconsistent with its argument that no evidence supported a judgment for any amount.
2. The evidence was legally insufficient to support the jury's finding of gross negligence because it did not clearly and convincingly establish that Diamond Shamrock was actually and subjectively aware of the specific risk that liquids would accumulate in the compressor discharge line and cause an explosion upon restart, yet proceeded with conscious indifference.

Questions Presented

1. Whether Diamond Shamrock waived its legal-sufficiency challenge by moving in open court to limit exemplary damages to the statutory cap.
2. Whether clear and convincing evidence supported the jury's finding that Diamond Shamrock had actual, subjective awareness of the risk of the compressor explosion and nevertheless acted with conscious indifference.
3. Whether the court of appeals' judgment reversing and remanding for a new trial should stand.

Disposition

reversed